Investment Plans 387 views November 25, 2020

Tata AIA MahaLife Supreme Plan

Tata AIA Life Insurance MahaLife Supreme is a non-linked non-participating endowment plan. This insurance policy provides benefits of a lump sum fund to the insured as per their choice between the following two options –

Option A: A policy term of 35 years with a limited premium payment term of 15 years

Option B: A policy term of 30 years with a limited premium payment term of 12 years

To know more about the Tata AIA MahaLife Supreme Plan, read this post below

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Tata AIA MahaLife Supreme Plan Maturity Benefits

When you survive till the maturity date of the policy, with all due premiums paid and the policy is active, you will get a fixed percentage of the Basic Sum Assured depending on your chosen option. Along with this, an applicable Guaranteed Annual Income will be payable in a lump sum to the life assured. Check out the table below and understand it better.

Age At Entry (in years)Option A Maturity
Amount of the Basic Sum
Assured
Option B Maturity
Amount of the Basic Sum
Assured
18138.20% 118.20%
19 138.10% 118.10%
20138.00%118.00%
21137.90% 117.90%
22137.80% 117.80%
23137.70% 117.70%
24137.60% 117.60%
25137.50% 117.50%
26137.40% 117.40%
27137.30% 117.30%
28137.20% 117.20%
29137.10% 117.10%
30137.00% 117.00%
31136.90%116.90%
32136.80%116.80%
33136.70%116.70%
34136.60%116.60%
35136.50%116.50%
36136.40%116.40%
37136.30%116.30%
38136.20%116.20%
39136.10%116.10%
40136.10%116.00%
41135.90% 135.90%
42135.80% 115.80%
43135.70% 115.70%
44135.60% 115.60%

Tata AIA MahaLife Supreme PlanSurvival Benefits

A Guaranteed Annual Income as a percentage of your Basic Sum Assured will be payable every year to the insured on survival during the policy term. This amount will be paid starting from the end of the 16th policy year till the end of the policy term or the death of the insured (whichever is earlier). This surrender benefit is for the insured who have chosen option A. On the other hand, this Guaranteed Annual Income will be paid at the start from the end of the 13th policy year till the policy term end or death of the insured if you have chosen option B.

What is a Guaranteed Annual Income?

If the policy is in force and all due premiums have been paid, a Guaranteed Annual Income as a percentage of the Basic Sum Assured will be payable every year throughout the policy term, depending on your chosen option –

Option A
Annual premiumGuaranteed Annual Income
15,000 to 19,9999.50%
20,000 to 29,9999.80%
30,000 to 49,99910.10%
>= 50,00010.40%
Option B
Annual premium
Bands (INR )
Guaranteed Annual Income
20,000 to 29,9996.00%
30,000 to 49,9996.30%
>= 50,0006.60%

Tata AIA MahaLife Supreme Plan Death Benefit

On the death of the insured during the policy term, an amount equal to the higher of the Basic Sum Assured, Annualised Premium * 0.5*Policy Term, or 105% of total premiums paid as on date of death (any one) will be payable. If the entry age of the insured is < 45 years, the higher of the Basic Sum Assured, Annualised Premium * 0.25*Policy Term, or 105% of total premiums paid as on date of death (any one) will be payable. For entry age, 45 years and above the Basic Sum Assured = 10 x Annualised Premium. 

The “Annualised Premium” is the premium that is paid in a year concerning the basic sum assured chosen by you, excluding the underwriting extra premiums and loading for modal premiums. Total Premiums Paid is the amount = Total Paid Premiums during the premium paying term. And such an amount should exclude interest, tax, underwriting extra premiums, and loading for modal premiums. And the Tata AIA MahaLife Supreme Plan will terminate upon the death of the insured and no other benefit under the policy shall be payable after that.

Tata AIA MahaLife Supreme Plan Surrender Benefits

Your Tata AIA MahaLife Supreme Policy can be surrendered any time during the policy term, provided at least the first 2-years’ premiums have been paid. And the surrender value will be available and paid to you on the completion of 2 years and above:

  1. Guaranteed Surrender Value(GSV) = 30% of the total paid premiums till the surrender date, excluding the premiums for the first year, irrespective of the guaranteed annual income (if any)or
  2. Cash Surrender Value (CSV) = Basic Sum Assured + Total Guaranteed Annual Income + Maturity Benefit over the Basic Sum Assured x minimum (No. of paid premiums / total number of payable premiums) – survival benefits (if any) x Surrender Value Factor

The Tata AIA MahaLife Supreme Plan Surrender Value Factors may vary according to your chosen option and the year of surrender. It will be applicable at the time of surrender and will be as follows:

Policy YearOption AOption B
10.00% 0.00%
210.00% 15.00%
311.00% 17.00%
412.00% 18.50%
513.00% 20.00%
614.50% 21.50%
716.00% 23.50%
817.00% 26.00%
918.50% 27.50%
1020.00% 30.00%
1122.00% 33.00%
1224.00% 34.00%
1326.00% 35.00%
1428.50% 36.50%
1531.00% 38.00%
1634.00% 40.00%
1735.00% 42.00%
1836.00% 44.00%
1937.50% 46.00%
2039.00% 48.00%
2141.00% 51.00%
2242.00% 54.00%
2344.00% 57.00%
2446.00% 60.00%
2548.50% 64.00%
2651.00% 68.50%
2754.00% 73.50%
2857.00% 79.00%
2960.00% 85.00%
3064.00% 92.00%

The company has the right to review the basis for calculating the surrender value factors from time to time based on the experience, and this will be subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Reduced Paid-Up Tata AIA MahaLife Supreme Plan

If the premiums for the first 2 years are not paid within the grace period, the policy will lapse from the first due date of the unpaid premium and no benefits shall be payable. However, if You have paid premiums for two consecutive years, and fail to pay the premium within the Grace Period after your policy has acquired a Cash Surrender Value, you may either choose to surrender or continue as a Reduced Paid-Up Tata AIA MahaLife Supreme Plan by sending a written notice to the company within 90 days after the due date of the premium in default.

A Reduced Paid-up Sum Assured is calculated using the below formula:

Reduced Paid-up Sum Assured = (No of years of paid premiums)/ (No of years of payable premiums, during the term) x Basic Sum Assured

The following are the benefits you will get based on your Reduced Paid-up Sum Assured.

  1. On the death of the life insured during the policy term, a benefit is payable to the claimant that will be the Reduced Paid-up Sum Assured or 1.05X the Total Paid premiums till the date of death (whichever is higher).
  2. A Guaranteed Annual Income will be paid to the insured on survival under this policy but on the Reduced Paid up Sum Assured. 
  3. The maturity benefits will be the same, but it is based on Reduced Paid-up Sum Assured plus the Reduced Paid-up Sum Assured Guaranteed Annual Income. 

If your policy becomes Reduced Paid-Up, Tata AIA MahaLife Supreme Plan and is not revived till the end of the revival period, it will continue to be in reduced paid-up status.

Tata AIA MahaLife Supreme Plan Claim Process

In the case of death, you must notify the company immediately in writing. Whereas the other claims must be submitted in writing not later than 20 days after the date of that event. However, if there is any delay in notification, you are required to give evidence or provide information to prove the reason for the delay.

At the claimant’s expenses, affirmative proof of loss and any appropriate forms required by the company must be completed and furnished within 90 days after the date of the event. A list of primary claim documents is required by the company which must be attached to the policy. The insurance company reserves the right to ask for any additional proof and documents in support of the claim. And also it reserves the right to request medical examination of the insured. In the case of death, the company may require, if appropriate and legally allowable, an autopsy of the same.

Tata AIA MahaLife Supreme Plan Taxes

A service tax will be applicable as per the governing laws on the Tata AIA MahaLife Supreme Plan And the same shall be borne by the insured. The company may recover from the insured any levies and duties (including service tax), as imposed by the government.

Free Look Period

When you are not satisfied with the terms & conditions of the Tata AIA MahaLife Supreme Plan, you can cancel the policy by sending a written notice to the company. After which you will receive the paid premiums after a deduction of the proportionate risk premium for the period of cover and the medical examination costs, if any, along with the stamp duty charges.

Note – You need to sign such a notice and the company should receive it within 15 days after you or any person authorized by you receives the policy. This period of 15-days shall be extended to 30 days if the policy is sourced through distance marketing.

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